We've known for a while now that the folks at Redbox are planning a digital service to go with their DVD rental kiosks, but just what kind of plan they'll use has been a mystery. Redbox president Mitch Lowe confirmed in an investment call that we'll be seeing the first real Netflix competitor.

Instead of going with the on-demand style that most other companies
choose, Redbox will be following in the shoes of Netflix by creating a
subscription based streaming service. That's a big deal, especially
since they'll be the first company to step up to the plate.

Low did not reveal what companies Redbox has been talking to regarding
partnership, but did say " What we're looking for is a partner that,
yes, has customers, but also more importantly has a lot of quality
entertainment rights." The rumor mill pegs Walmart as a likely
candidate.